Sunday 1 October 2017

Saudis Pay the Price for OPEC Leadership - Bloomberg Gadfly

Saudis Pay the Price for OPEC Leadership - Bloomberg Gadfly:

"This isn't the result the Saudis were looking for, and they might just decide to fight back.Saudi Arabia's leadership of OPEC and non-OPEC production cuts comes at a cost. Not only is it trimming export volumes, it is also losing market share in key destinations, most gallingly, to countries that are also part of the output deal. That could herald fierce competition for market share once restrictions are lifted.After almost a year of negotiations, OPEC member countries agreed in November to reduce output by around 4.5 percent (with a couple of exemptions). The following month they secured pledges from a group of non-OPEC countries to cut their production. Most important of these was Russia, which agreed to trim output by 300,000 barrels a day, or 2.7 percent."



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